ScoreWhy is Lemon Tree Hotels Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.90 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.90 times
2
With ROCE of 17.1, it has a Expensive valuation with a 3.3 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -22.94%, its profits have risen by 29.5% ; the PEG ratio of the company is 1.2
3
Below par performance in long term as well as near term
- Along with generating -22.94% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Lemon Tree Hotel for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Lemon Tree Hotel
-22.94%
-0.70
32.96%
Sensex
-2.63%
-0.19
13.57%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
41.83%
EBIT Growth (5y)
69.37%
EBIT to Interest (avg)
1.97
Debt to EBITDA (avg)
8.01
Net Debt to Equity (avg)
1.32
Sales to Capital Employed (avg)
0.29
Tax Ratio
19.72%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
33.80%
ROCE (avg)
10.37%
ROE (avg)
12.79%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
35
Industry P/E
37
Price to Book Value
6.32
EV to EBIT
19.25
EV to EBITDA
15.38
EV to Capital Employed
3.29
EV to Sales
7.36
PEG Ratio
1.17
Dividend Yield
NA
ROCE (Latest)
17.09%
ROE (Latest)
18.29%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
ROCE(HY)
Highest at 16.48%
DEBT-EQUITY RATIO(HY)
Lowest at 1.44 times
PBT LESS OI(Q)
At Rs 76.97 cr has Grown at 25.73%
PAT(Q)
At Rs 46.03 cr has Grown at 20.1%
-3What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 12.43 times
Loading Valuation Snapshot...
Here's what is working for Lemon Tree Hotel
Debt-Equity Ratio - Half Yearly
Lowest at 1.44 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 76.97 cr has Grown at 25.73%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 46.03 cr has Grown at 20.1%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for Lemon Tree Hotel
Debtors Turnover Ratio- Half Yearly
Lowest at 12.43 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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